Aviation IoT Market outlook:
The Internet of Things (IoT) is a computer concept that allows users to use and control physical objects by connecting them to the Internet. Today IoT is an important and integral part of the aviation industry, as the aviation industry always strives to provide a superior travel experience at the lowest fares. The IoT aviation market will generate revenue of US $ 25,134.6 million, while it will grow to 16.34% growth rate by 2023. Increased passenger traffic, the subsequent demand for new aircraft, and increased investment in smart and smart airport concepts are driving the market growth.
Looking at the structure of the market, this report offers information on the factors that influence market growth. Assessing the size of the Aviation IoT Market and predicting revenue, this report addresses and looks at the competitive developments of market participants, which include joint ventures, mergers and acquisitions, new product development, research and development (R&D), and strategic alliances.
Huge R&D investments have led to technological innovations in the aviation sector as well as in the IoT sector. Also, the optimization of energy and processes and the rapid adoption of flexible IFEC systems have led to the demand for more aviation industry participants to incorporate IoT into their operations and services, leading to the growth of the aviation IoT market. However, the vulnerability of IoT systems to cybersecurity can harm market growth.
Impact of COVID-19 on the internet of the things Aviation IoT Market:
The outbreak of the COVID-19 pandemic severely affected the aviation industry's trade and operations. Although the movement of airline passengers in domestic and international destinations has recovered since the third quarter of 2020, the recovery has been very slow. According to the results of our survey, the domestic aviation market is expected to recover faster than its international equivalent. Government policies and regulations related to commercial air transport are also expected to have a direct impact on passenger volumes.
Airport stakeholders and airline operators comply with safety standards, adopting high-level contact solutions to enter passengers. The deployment of IoT devices is expected to intensify as most airport operators invest in hygiene resources and use contactless interactive technologies. IoT has the potential to transform today’s facilities into smart infrastructure and improve overall business processes. Collecting critical information to analyze and improvise health-related decisions is becoming an area of contemporary application in the commercial aviation industry. Real-time temperature monitoring and infection detection has become an essential part of the journey. IoT devices with high-temperature monitoring temperatures help monitor the health of passengers and transmit information to competent authorities in real-time.
Personal Electronic Devices (PED) can play a crucial role in ensuring the safety of passengers during the post-COVID situation. The integration of IoT devices in airports with PEDs is expected to offer a multitude of self-service options and provide real-time data, helping to avoid direct contact and reduce queuing time. As a result, the pandemic situation is expected to encourage investment in the installation of IoT devices, thus fueling the market growth.
Segment Analysis of Aviation IoT Market:
Aviation iot market by application, end-user, and region. The airline program has been subdivided into fleet management, improving the passenger experience, and more. Application-based segmentation targets this market in airline applications, airport applications, and air traffic management application processes. The airport application subsection covers operations, passenger processing, and security. The subsection of the air traffic management application consists of the optimization of flight recovery, runway management, and other processes.
Aviation iot market technology, the market has been segmented into communications services, data center systems, devices, IT services, and software. Based on end-users, the market has been divided into airlines, airports, and air traffic management.
Forecast of IOT in Aviation Market:
It is expected to grow to a 21.4% growth rate by 2021 to 2023. The aviation industry is shifting tectonically to automated and intelligent systems in line with continuous advances in technology. At the moment, IoT (Internet of Things) devices are emerging as crucial devices for aviation industry owners to collect data in real-time and obtain workable information.
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Aviation IoT Market Trends:
The aviation industry is continuously adopting a digital ecosystem and is subsequently configured to generate large volumes of data. The development of a more recent version of the Internet Protocol (IP), the Internet Protocol version 6 (IPv6), has already improved the data processing capability and the overall operation. The introduction of low-power terrestrial networks in the L-band to maintain 5G connectivity is expected to further increase data transfer capacity, thus encouraging the deployment of IoT-compatible devices in the aviation industry.
IoT expects a critical role in weather forecasting, as well as monitoring various aircraft systems in real-time. Monitoring the weather with advanced sensors and analyzing the collected meteorological data can help airlines make informed decisions in real-time and choose alternative air routes. Likewise, the deployment of sensors and IoT devices within the aircraft can help monitor engine performance and, consequently, reduce fuel consumption and improve profit margins.
Detailed Regional Analysis of Aviation IoT Market:
North America is the largest regional market. In 2017, it had the largest market share of 30.89%, whose market value was $ 3,150.5 million. During the forecast, this market was forecast to grow by a 15.61% growth rate. The United States and Canada are the strongest economies in the region and can be profitable markets. In 2016, U.S. airlines spent about $ 25 million to alleviate congestion at several airports in the United States. This kind of development can increase the growth of the fuel market. The IoT aviation market in North America is expected to expect a 15.61% growth rate during the forecast.
In Europe, the Aviation IoT Market is growing due to strong economies such as France, Germany, Italy, the Netherlands, and the United Kingdom. Due to technological advances, Europe is one of the main regions for aviation IoT. In 2016, more than 4,500 aircraft operated in Europe. In 2023, the number is expected to be 8,000. In this region, the market is growing due to greater cooperation between airlines and airport authorities, such as the installation of intelligent solutions and the increase in the number of aircraft. Thus, market growth for Europe should record a growth rate of 14.73% during the forecast.
Asia-Pacific will emerge as the fastest-growing market during the forecast with an 18.40% growth rate due to the growing demand for in-flight connectivity and connected electronic devices, rapid urbanization, increased technological progress, the need to improve the passenger experience, and growing investments in IoT solutions from air operators and airport authorities. The main country-specific markets in this region are China, India, Japan, and South Korea, followed by the rest of the countries in the Asia-Pacific region.
In the MEA region, the market is mainly driven by the growing passenger traffic in this region. Airlines are investing in ways to reduce fuel consumption, superior in-flight connection networks, and improve the passenger experience while baggage and security. During the forecast, the market in the MEA region is expected to grow by a 16.50% growth rate. Specific markets for significant countries in this region are Saudi Arabia and the United Arab Emirates, followed by the other countries in the MEA region.
In Latin America, the market grew by a 17.26% growth rate during the forecast, due to increased investment and the growing demand for real-time data from airlines. In this region, airports are focusing on lower operating costs, assimilating IoT and satellite connectivity solutions. The largest market in this region is Brazil, followed by other countries in Latin America.
Aviation IoT Market Size and competitive analysis:
The opportunity to grow in the IoT aviation market is competitive due to the effective application of strategies such as geographic expansion, the launch of new products, acquisitions, deals, and R&D to strengthen its business portfolio. It is noted that market participants aim to increase their operations globally and engage in strategic acquisitions to grow in the cold-pressed organic juice business.
The report provides market growth and demonstration in five major markets. This helps the leaders of the organization make better decisions when currency exchange data is readily available.
The U.S. aircraft IoT market is expected to grow with a significant growth rate in the forecast. Economic development and major infrastructure development have generated regional revenues. Besides, the patterns associated with domestic production, import and export, and consumption helped market participants analyze and capitalize on potential opportunities. Also, the qualitative and quantitative parameters provided in the report with detailed analysis highlight the factors to target and limit the U.S. aviation IoT market.
The global Aviation IoT market is projected to acquire USD 25.13 billion by 2023, expand at a moderate 16.34% CAGR in the review period.
The airline segment is expected to observe substantial demand over the review period.
The APAC region is expected to secure the highest CAGR.
The I.T. services segment is slated to expand as the fastest-growing segment.
A few eminent market players operating in the global Aviation IoT market are Amadeus IT Group SA, Huawei Technologies Co. Ltd., Cisco Systems Inc., SAP SESITA, and others.
Global Aviation IoT Market: Competitive Landscape
Cisco Systems, Inc., Huawei Technologies Co., Ltd, SAP SE, SITA, and Amadeus IT Group SA are the five major players operating in the global aviation IoT market. Cisco Systems, Inc. held the largest share among top five players with a share of 25.80%, in 2017, followed by Huawei Technologies Co., Ltd and SAP SE with respective shares of 13.62% and 10.68%. These companies continue to retain their strong global presence through expansions, mergers & acquisitions, partnerships & collaborations, and extensive product portfolio.
Cisco Systems, Inc. is the leading company in the aviation IoT market. The company focuses on expanding its market presence through the acquisition of specialized tech companies. The company investing in the research and development for producing technologically advance systems such as cloud computing and cloud security.
Huawei is focused on innovation to increase its product offerings in line with the latest technological advancements. It is well established in China and strives to expand its presence in the global market as well. The company also establishes strategic partnerships with organizations such as IATA to boost digital transformation throughout the aviation industry. Furthermore, it focuses on ensuring customer satisfaction and consumer value by providing innovative products.
SAP is focused on expanding its regional presence and the strategic acquisition of start-up companies. SAP invests in the research and development of intelligent systems, cloud platforms, data management, and intelligent cloud suite to gain a larger market share.
SITA focuses on reducing costs and increasing efficiency to maintain its position in the market and attract more customers. Through developments and innovations in cybersecurity, disruption management, identity management, airport connectivity, and bag tracking the company aims at addressing the pressing issues faced by the aviation industry. SITA is also focused on improving passenger experience and operational efficiencies through collaborations with different airlines, air traffic management organizations, and air navigation service providers.
Amadeus has been focused on the R&D of innovative products and solutions. The company engages in partnerships and collaborations with airports across the globe to increase its global presence, especially in Asia and the Middle East. In addition, Amadeus aims at reducing the risks associated with exchange rate fluctuations as it deals in the currencies of the US, the UK, India, Australia, and Sweden.
Although the leading players, as mentioned above, are dominating the market due to their vast industry experience, wide service offering, and geographic reach, other companies are actively contributing to the market. These players may strengthen their presence worldwide through new product/service innovations during the forecast period. Vendors with access to better technologies can develop unique and innovative products and services, which could render the competitors’ offerings obsolete. The competitive environment in the market is likely to intensify further due to the increasing number of new product developments, business expansions, and mergers & acquisitions.